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TMI Blog2021 (9) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ;C' Bench, Chennai in G.T.A.Nos.13 & 14/Mds/2002 dated 20.06.2008 for the assessment year 1991-92. 2. T.C.A.No.1214 of 2009 is the lead case as it is an appeal which flows from the assessment order and T.C.A.No.982 of 2009 is as against the order of penalty. 3. T.C.A.No.1214 of 2009 was admitted on 17.11.2009 on the following substantial question of law: "Whether the guideline value for the purpose of the valuation of stamp duty and registration can be taken the basis for the purpose of determining the value of gift as against the value as per Schedule II of Gift Tax Act." 4. We have elaborately heard Mr.R.Vijayaraghavan, learned counsel appearing for the appellant/assessee and Mr.M.Swaminathan, learned senior standing counsel appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not find a prospective buyer except the partnership firm and under those circumstances, he had to sell the property for a price of Rs. 3 lakhs. This explanation was found to be wholly unsubstantiated and rejected by the Assessing Officer. Further, the Assessing Officer noted that as to who are the partners of the purchasing firm. Thus, concluding that the price quoted in the sale deed was not true or in other words, property was disposed of for an inadequate consideration falling within the mischief of Section 4 of the Act. Accordingly, assessment was completed on 31.03.1995 demanding a total amount of Rs. 6,92,220/- as a gift tax and thereafter, by order dated 13.08.1996 imposed a penalty of Rs. 50,000/-. 6. As against the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actors which have to be recorded while arriving at the value of the property. Fourthly, it is submitted that the Gift Tax Act was amended only on 01.04.1989 and prior to the amendment, the value of the property ought to have been determined in terms of Schedule II of the said Act, whereas the Assessing Authority has proceeded to determine the value of the property based upon the guideline value. 8. So far as the first contention is concerned is that the assessee pleads ignorance and innocence, is not acceptable because all the three fact finding authorities did not agree with such a stand taken by the assessee and in fact, the Assessing Officer goes to the extent of stating that there is no evidence produced by the assessee to establish su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y participated in the decision making process to arrive at the value of the property fully knowing well that the valuation is being done not solely based upon the value shown in the documents which are in respect of properties in the same Industrial Estate. 10. Furthermore, the assessee sought to rely on those documents to show that the guideline value was always been high and the market value of the property was low. In any event, we are not on the valuation but we are here on the conduct of the assessee as to how he understood the concept of valuation and we are clear that the assessee was clear in his mind as to how the valuation is required to be done. Therefore, to state at this juncture that the valuation has not been done in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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